Ways to pay for spring clean home improvements
Spring is here, so home improvements are definitely in the forefront of peoples mind. The only thing about these types of projects is, they don’t tend to come cheap. We have put together some financial planning options and advice for you so you can give your home the spring clean it deserves.
Use your Savings
If you do have a rainy day fund, why not use it for home improvements rather than holidays or a new car? Effectively you are making your living environment a more enjoyable place to be, and it’s actually an investment in your property. Changes to your home can increase the value exponentially. A brand new bathroom can increase the price tag by up to 5%, and a swanky new kitchen can add 4% based on estimates.
If you do have some spare cash on hand, using this for home improvements could be the best option for you. However, if your money is in a fixed rate bond, the penalty fee you may incur by withdrawing may not make it worthwhile.
Use a 0% Credit Card
The benefit of using this method is that if the project doesn’t turn out as planned, i.e if the company goes bust or there is a major fault when it comes to the finished product or level of service, you can actually claim this money back. This works the same way even if it is only a deposit you have put on your card. The only stipulation is the amount you put on the card is between the range of £100 and £60,260. You will automatically be covered under the Consumer Credit Directive, once you have used your card.
If you can’t clear the balance straight away – then make sure you got for a credit card that offers 0% on purchases. This will give you some additional time to clear the balance with no additional interest incurred. There are also lots of major supermarket stores that not only offer 0% interest credit cards, but the option to rack up points on purchases when you use them on in-store purchases. If you do have a preferred supermarket – it is worth checking out the options as it could save you some money on your shopping bills.
Cashback on Purchases
There are some card providers out there that not only offer you 0% on any purchases that you make, but cash back on them. This gives you the advantage of being able to spread the cost of your improvements as well as actually make some money back. They do tend to have higher interest rates once the 0% time period is over, so make sure you read the small print before putting any purchases on them – and it could be that the full limit won’t cover the full cost of the home improvements.
Get a Personal Loan
Depending on the scale of your home improvements a personal loan could be an option. It could be that you are looking to completely refurbish your kitchen, or get a new conservatory that could set you back at least £10,000. Your savings or credit card limits may not be able to stretch to that amount.
There are some great providers out there to help you on your way. Everyday Loans for example offer loans for home improvements and give you the option to apply online to make things quick and easy for you. The good news is that their quotes don’t affect your credit score either which should alleviate any concerns if you don’t have the best of credit. If you get accepted, all you need to do is visit one of your local branches and get things finalised.
You can Use the Value of your Home
If your home improvement plans are vast, for example if you want to build an extension – it’s always worth a shot to approach your mortgage lender to see if there are any advance options to free up some cash. This isn’t something you should do without great consideration, for numerous reasons. You may not be able to get the extra funds at the same rate as your existing mortgage plan, or you could be locked in for a certain time period which could cause some complications if you are renewing your entire mortgage deal.
It could be that you are nearing the end of your mortgage deal. In which case, you can create a new one which would be inclusive of the extra cash you need for the home improvements to a rate that is lower.
There are definitely some options that you can consider when financing improvements to your home, and our message is to make sure you don’t take those decisions lightly.
